Growth in food retail at highest in two years thanks to summer finally arriving
After a damp start to summer, till sales growth boomed in July to record the strongest growth for food retail in two years.
Total till sales at UK supermarkets grew 5.5 per cent in the four weeks ending 10 August 2024, up from 3.6 per cent in the previous month, according to fresh data by NIQ.
Sales reached 6.6 per cent during the brief summer heatwave in early August, also aided by promotional discounts retained after the Euros and falling food inflation.
Ice cream value sales soared by 38 per cent, as did water – by 32 per cent – as shoppers sought to keep cool.
Sales of suncare rose by 49 per cent and hay-fever remedies rose by 42 per cent, with “more time being spent outdoors and households buying ahead for summer holidays”, NIQ said.
Around a quarter of all goods purchased during the period were discounted.
Mike Watkins, NIQ’s UK head of retailer and business Insight, said: “Retailers will be pleased to have maintained shopper spend beyond Euro 2024, with the warm summer weather adding a boost to sales.
“However, with almost 1 in 3 household`s 29 per cent top concern still being inflation and shoppers still looking for value, it’s clear that loyalty and membership schemes remain key to encourage spend.”
UK retail sales similarly ticket up in July as summer discounts and major sporting events offered a boost to department stores and sportswear shops.
Sales of soft drinks grew by 10.4 per cent in august, while sales of produce and alcoholic drinks grew by 6.5 per cent and 10.4 per cent, respectively.
Easing inflationary pressures and lower interest rates are expected to provide a boost to consumer spending for the remainder of this year.
“As summer draws to a close, retailers will be under pressure to maintain sales growth in the next six weeks,” Watkins said. “This is especially true with the lack of seasonal events and the back-to-school period, as shoppers settle into new routines.”
“We can also expect more comparative price advertising by retailers as they reinforce price credentials ahead of the all-important fourth quarter sales build,” Watkins added.